The immediate outlook for Axis Bank (₹421.6) had turned positive in March. The stock finds immediate resistance at ₹454 and the next one at ₹515. A close above the second resistance will change the long-term outlook to positive for Axis Bank that can lift the stock above its all-time high of ₹655. On the other hand, Axis Bank finds immediate support at ₹373 and a crucial one at ₹312.

F&O pointers : Axis Bank futures shed open interest along with the fall in share price. This indicates that the stock could face difficulty in moving up. Option trading indicates that the stock could move in the ₹420-470 range.

Strategy : Traders could consider buying ₹430-April-call on Axis Bank. The call option closed with a premium of ₹9.85 on Friday. With the market lot being 1,000 shares per lot, one has to spend ₹9,850 to initiate this strategy. While the maximum loss is the premium paid (i.e. ₹9,850), profit could be unlimited should the stock surge swiftly in April.

With more trading holidays in this series, the option may lose premium due to time value. However, the bank is announcing its result on April 25. Post this, the stock could swing sharply in one direction, based on the financial performance. This contract is expiring on April 28. We advise traders to exit from the strategy if loss mounts to ₹6,500.

Investors with a good risk appetite could consider going long on Axis Bank futures with a stop-loss at ₹373. Stop-loss can be shifted to ₹454, if the stock moves past that level. This will require higher margin commitments, as Axis Bank is one of the volatile counters.

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